Investigate Bank Of Uganda – Hon Nandala Mafabi
Budadiri West MP Nathan Nandala Mafabi has asked Parliament to investigate alleged cases of negligence by the Bank of Uganda, in relation to the collapse of Crane Bank.
Mafabi, in a motion, tabled to Parliament today, contends that the Central Bank only turned a blind eye to inefficiencies in Crane Bank because of unethical conduct by particular individuals.
“The systematic institutional failure by the Bank of Uganda to fulfil its core statutory mandate is an indicator of incompetence and potential complicity on the part of the Bank of Uganda,” he said.
He says there is a lot of rot that has been kept under the carpet and only Parliament can unearth it through a select committee.
According to the legislator, most of the mess in Crane Bank gained immunity due to what he described as “collusion, corruption, insider trading and fraud that went undetected or was [simply] covered up.”
The lawmaker also said that the Crane Bank proprietor Sudhir Rupareria cultivates social capital with those meant to supervise him, thus the collusion.
“Parliament needs to carry out a comprehensive investigation into the role of Bank of Uganda in the mismanagement of Crane Bank, inquire into and assess the performance and liquidity of Bank of Uganda,” among others.
He also wants Parliament to grill officers in the central bank who were directly charged with the supervision of Crane Bank as well as Bank of Uganda’s capacity to supervise financial institutions in the country.
The motion was seconded by Igara West MP Raphael Magyezi and Nakawa Division MP Michael Kabazziguruka.
The motion comes at the time when there has been a lot of public debate and an unresolved estrangement between Bank of Uganda and former Crane Bank proprietors and stakeholders.
The Deputy Speaker, Hon Jacob Oulanyah asked for time to study the request fearing that it might already be under the Committee on Commissions, Statutory Authorities and State Enterprises chaired by Bugweri County MP, Abdul Katuntu.